Any kind of insurance is not just worth it but can be considered as necessary in the world we live in. If insurance companies are doing good business it is because there is a huge market for underwriting different kinds of backup security that people want for their lives, limbs and assets. On their part, insurance companies also make efforts to educate their audiences about the need for such insurance. Read guide about Long Term Disability Insurance below.
The disability insurance awareness month was launched by the insurance companies that provide cover for disability. They decided to do so because there is a massive market for coverage against disability, both long and short term. There is a perception among a section of the market that if such coverage is to be taken, try it out with a short term policy as it costs much less. What are they going to do if they face disability for a longer term?
Long term disability coverage is indispensable
If you have somehow agreed to invest in disability insurance after much persuasion by your friendly neighborhood broker agent advisor, you would like to know why a long term policy is indispensable. This is where industry insights are so important – studies show that the average disability duration in America is more than two and a half years.
Your short term policy will cover you for only six months of disability. How are you going to manage your expenses and pay your bills if your disability stretches beyond six months and goes up to even one half of the national average duration? These are real situations that you need to consider before getting disability coverage.
Keep earning even when you aren’t working
Most people in untapped markets have disability concerns but if you tell them that they can cover themselves from disability-induced unemployment, they won’t believe you. The market strategists in insurance companies know that very well and have begun to reach out to the market with targeted and effective communication.
As a result, people have begun to realize the importance of such insurance although there is still a long way to go. The main advantage that insurance companies have in this regard is customer testimonials verifying the benefit they received. There are scores of cases to show how people were able to rebuild their careers and lives from near hopeless situations.
Don’t go overboard in paranoia about disability
You will hear many disability news stories where the victims’ careers and lives were wrecked when they could not work and earn to pay their bills. These are true stories of people who had not covered themselves against such an eventuality but don’t get unduly worried about it and try to get total income replacement.
This compensation is not meant to provide you income replacement matching your salary. This is a contingency amount equaling about 60% of your net income in a long term policy, with which you can pay your bills and meet your basic expenses. If you want the compensation to match your total salary, the premium will be very high and unsustainable.
It is advisable that you speak to your broker advisor about the most optimum long term policy that will be easy to pay and at the same time cover you adequately.